Jun 9, 2023

700 people from more than 80 countries, including over 30 ministers and 50 CEOs, gathered in Versailles, France from 7-8th June, for the 8th Annual Global Conference on Energy Efficiency. The event organised by the International Energy Agency (IEA), was hosted by the French Minister of Energy Transition, Agnès Pannier-Runacher and IEA Executive Director, Dr Fatih Birol, in partnership with Schneider Electric.  

The conference brought together global energy and climate leaders in France for a major ministerial meeting on energy efficiency, with new IEA analysis showing that the world needs to double progress on efficiency between now and 2030 as part of efforts to improve energy security and affordability, while keeping the goal of limiting global warming to 1.5 °C within reach. 

A special briefing report published on 7th June for the Global Conference – Energy Efficiency: The Decade for Action – highlighted that ramping up annual energy efficiency progress from 2.2% today to over 4% annually by 2030 would deliver vital reductions in greenhouse gas emissions and at the same time create jobs, expand energy access, reduce energy bills, decrease air pollution, and diminish countries’ reliance on fossil fuel imports – among other social and economic benefits. 

Of particular note to the HVAC industry was the marked rise in heat pump installations. The briefing report found that, ‘High efficiency electric heat pumps are a key technology to decarbonise space and process heating. The latest market data shows that heat pump sales for residential space heating continue to rise significantly with a global increase of more than 10% in 2022. The largest increases were seen in Europe, where sales rose by nearly 40% in 2022, driven by concerns over security of gas supplies and by installation subsidies. In France and the United States, the installation of new residential heat pumps overtook those of fossil fuel-based heating systems for the first time.’ 

Energy efficiency investment in 2023 is expected to reach record levels, despite a slowdown in year-on-year growth as the high cost of capital weighs heavily on potential new projects. Under current expected and announced policies, efficiency-related investment is projected to rise by a further 50%. However, to see annual progress double, investments in the sector must increase from USD 600 billion today to over USD 1.8 trillion by 2030. 

IEA Executive Director Fatih Birol said: “Today, we are seeing strong momentum behind energy efficiency. Countries representing over 70% of the world’s energy consumption have introduced new or improved efficiency policies since the global energy crisis began over a year ago. We now need to push into a higher gear and double energy efficiency progress by the end of this decade. I believe this major global conference, which I’m delighted to co-host with French Minister Pannier-Runacher, can be a vital impetus for accelerating ambition and action.” 

France’s Minister for Energy Transition Agnès Pannier-Runacher said: “Energy savings and energy efficiency are the most simple and obvious responses to both the energy and the climate crises. They are one of the most crucial actions for clean energy transitions, and that is why I am honoured to co-host this important global conference. I am pleased to be working closely with the International Energy Agency to strengthen the focus on energy efficiency worldwide.” 

The new IEA report shows how doubling energy efficiency efforts can also deliver positive knock-on effects for society. Today, the sector employs tens of millions of people worldwide. With increased ambition, energy efficiency activities could lead to another 12 million jobs globally by 2030. Importantly, more efficient and lower energy demand supports faster progress towards universal access to modern and affordable energy in emerging and developing economies.  

Read the report in full : Energy Efficiency : The Decade for Action

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